Hiscox exit is end of an era

THE announcement that Robert Hiscox is to retire next year when he reaches the age of 70 marks the end of an era for the London insurance market.

Hiscox, who chairs the FTSE 250 listed insurer that bears his name, has been in the business for 47 years. Insurance is in his DNA. His father Ralph formed the Roberts & Hiscox partnership to manage Lloyd’s syndicates just after the Second World War. The young Robert joined the group’s Syndicate 33 as an underwriter of fine art and personal accident insurance in 1967, the same year his father was chosen as chairman of Lloyd’s. Robert took over as head of the partnership in 1970, after the death of his father.

He demerged the partnership in 1994 and Hiscox plc was listed on the London Stock Exchange three years later. The company rebuffed bids from US insurer Chubb, with Hiscox subsequently saying: ‘When an offer was made I was outraged. It was a personal affront to me as you can never buy me. I can’t understand that people do things for money.’

The company moved its domicile from the UK to Bermuda in 2006. The insurer is searching for a new chairman to replace Robert Hiscox, who says he has gradually handed power to chief executive Bronek Masojada. He described himself as ‘just a sleeping giant at the top these days. Now it is time for me to ease out and get the right chairman in to oversee the company.’

The company managed to turn in an unexpected profit for 2011, reporting it was £17.3m in the black despite expectations in the City it would fall into a £2030m loss due to a spate of natural disasters.

Profit at the insurer (down 0.2p to 409.8p) suffered a steep drop from £211.4m a year ago, but the group said it was able to absorb heavy losses thanks to a 75pc increase in profits from its UK retail business, which specialises in art cover for wealthy individuals.

The dividend rose 3pc to 17p.